SPY closed at $744.39 and QQQ at $737.95, both softening slightly yesterday, while gold dipped to $378.81 — a 90-day low — suggesting a risk-on tilt despite mixed breadth. The 10-year yield remains anchored at 4.45%, providing a stable backdrop for equities as earnings season begins in earnest.
Health Care (XLV) is leading the charge, up 1.2% over the last five days, as defensive positioning unwinds. The sector’s relative strength is confirmed by LLY's continued breakout, and the sector's resilience is a key signal in a market sensitive to rate risks. Consumer Staples (XLP) is also showing strength, suggesting a rotation into quality as earnings flow picks up.
We're watching LLY (earnings expectations — semis read-through), ILMN (broke $162 last week — momentum confirmation), and INCY (sympathy play — biotech bounce). ABBV (sector laggard — value bid) is also on the list.
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